Although the second quarter of 2006 and most of the current third quarter
continued to be developmental, great progress has been made in building
Phonezoo's completely integrated pre-paid calling card system and AVOP's
completely automated VOIP minutes trading exchange. As a result of the
monitoring and testing of these truly extensive proprietary
infrastructures, Nettel Holdings is now in a much better position to
generate increased earnings and reach profitability.

PhoneZoo activity for the month of July 2006 (highlights)

- Currently averaging over 400 phone cards sold per day ($5 cards)
- PhoneZoo has sold over 14,000 cards in four states, and Canada
- The minutes for the cards are obtained through AVOP
(our own division). With the help of AVOP's buying power, this
enables our clients to get the lowest rates as they do business
with the most advanced system the industry has to offer

AVOP is processing an average of $10,000 in transactions per day (10%
profit). Management expects these numbers to remain consistent while
improving. We are aware that the completion of each division has taken
longer than expected, and we are certain there will always be room for
changes and improvements as we strive to meet market needs. We feel in
doing this, it ensures future success and longevity in this industry.

In the second and third quarters we found a need to enhance AVOP even more
for the sake of new customers and their needs. New internal organizational
procedures had to be installed, and technical modifications to the system
were produced by the Entec division. The end result is that AVOP is a
smooth functioning trading exchange for phone minutes that can deal with
large buyers and sellers at the same time. In view of all this, basically
from the start, we should be able to generate significant growth from this
point onward.

PhoneZoo also expended considerable time and expense to further enhance its
integrated card system. This was necessary for us as a direct response to
feedback from many distributors. PhoneZoo has developed its own unique
proprietary phone system. Every aspect of our phone card from registration
to the quality of each call has to be monitored and brought to high quality
standards. Management believes that its distributors and retailers are
satisfied with the improvements we've implemented from their input, and
that sales of the cards will continue to increase as a result. In view of
all these necessary changes taking considerable time, we are realistic in
our assessment that they had to be dealt with quickly as possible while
they were still easy to modify or initiate.

All of Nettel Holdings management agrees that time is money, so we had no
other option but to invest our time wisely for future revenue that will
speed up profitability factors. Some tough choices have to be made from
time to time but if production is running smoother afterwards from then on,
it makes good business sense. This was a very good move on behalf of
stockholders, our sales potential, and that of our clients who needed these
changes looked into.

Safe Harbor: Except for historical information contained herein, the
statements in this news release are forward-looking statements that are
made pursuant to the safe harbor provisions of the Private Securities
Reform Act of 1995. Forward-looking statements involve known and unknown
risks and uncertainties, which may cause a company's actual results in the
future to differ materially from forecasted results. These risks and
uncertainties include, among other things, the company's ability to attract
qualified management, raise sufficient capital, and effectively compete
against similar companies.